Global X bolsters thematic suite with European infrastructure ETF

Global X has launched a new thematic equity ETF in Europe targeting companies heavily involved in infrastructure development within developed European markets.

The Global X European Infrastructure Development UCITS ETF (BRIJ LN) has been listed on London Stock Exchange in US dollars (Ticker: BRIJ LN) and pound sterling (BRIP LN), on Deutsche Börse Xetra in euros (B41J GY), and on SIX Swiss Exchange in Swiss francs (BRIJ SW).

It has an expense ratio of 0.47%.

Infrastructure serves as the backbone of modern economies, enabling the efficient movement of people, goods, services, and information. It also intersects with critical priorities such as national security, supply chain resilience, and energy efficiency. Historically, investment in infrastructure assets has provided investors with key benefits, including portfolio diversification, regular income, inflation protection, and exposure to defensive business models.

This ETF is the first of its kind to specifically target infrastructure development companies based in Europe. According to Global X, the fund was created to address a market gap, allowing investors to capitalize on various pan-European initiatives aimed at modernizing and expanding infrastructure.

Global X highlights research from the Global Infrastructure Outlook, which projects that the European infrastructure investment gap – the shortfall between current investment levels and the actual investment needed – could reach $2 trillion by 2040. In response, European governments are actively addressing this gap, committing over €1.38 trillion to funding initiatives such as NextGenerationEU, the Cohesion Policy, and the Connecting Europe Facility, all aimed at modernizing and fortifying Europe’s infrastructure networks.

Morgane Delledonne, Head of Investment Strategy at Global X ETFs Europe, commented: “With substantial funding being directed towards infrastructure projects by both the EU and national governments, BRIJ differentiates itself from traditional infrastructure investing by using a pure-play approach that is focused on Europe. Through this, it aims to invest in companies that stand to benefit from a potential increase in pan-European initiatives aimed at modernizing infrastructure across the region.”

Methodology

The fund is linked to the Mirae Asset European Infrastructure Development Index which selects its constituents from a universe of companies listed in developed European countries with market capitalizations above $300 million and average daily turnovers exceeding $2 million.

The index covers infrastructure development across four key areas: traditional infrastructure, networks, clean energy, and digital technology.

To be eligible, companies must generate at least 40% of their revenue from European developed markets and derive 50% or more of their revenue from key infrastructure-related industries, such as civil engineering, construction, industrial equipment, clean energy, power generation, data centers, airports, marine ports, railways, roadways, and telecommunications.

The index emphasizes these “pure-play” companies, but may also include a limited number of pre-revenue and diversified companies involved in emerging technologies, such as quantum networks, provided these do not exceed 20% of the total allocation.

Constituents are weighted by market capitalization subject to a cap of 8%. The index is reconstituted annually and reconstituted each quarter.